XML 36 R25.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Note 19 - Restructuring Costs
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]

19. Restructuring Costs:

 

On February 7, 2024 Ting committed to the 2024 Ting Restructuring Plan which aimed to realign the Company's operational structure within the Ting operating segment and reduce Ting's workforce by 13%, or 7% of the Company’s total workforce, to better align with strategic objectives  (the "2024 Ting Restructuring Plan"). The 2024 Ting Restructuring Plan was designed to streamline operations and reduce operating expenses within the Ting operating segment. Substantially all of the employees impacted by the workforce reduction were notified on February 7, 2024 and have since exited the Company. 

 

During the three months ended March 31, 2024, the Company incurred $2.6 million in costs related to this restructuring, which were accounted for under ASC 420 - Exit or Disposal Cost Obligations. These costs associated with the "2024 Ting Restructuring Plan" predominantly consisted of one-time termination benefits for the terminated employees associated with the restructuring, and to a lesser extent, continuation of benefits and outplacement costs.

 

The costs are recorded within the following financial statement captions on the Consolidated Statements of Operations and Comprehensive Loss (Dollar amounts in thousands of U.S. dollars):

Expense Presentation

  

For the Three Months Ended March 31,2024

  

Direct cost of revenue

   $ 365  

Sales and marketing

     1,885  

Network, other costs

     54  

General administrative

     256  
    $ 2,560  

 

All of the costs associated with the 2024 Ting Restructuring Plan were charged to the Ting operating segment. 

 

The components of the restructuring charges were as follows (Dollar amounts in thousands of U.S. dollars):

Cost Description

  

For the Three Months Ended March 31,2024

  

One-time pay

   $ 2,089  

Continuation of benefits

     280  

Outplacement costs

     191  

Total restructuring charges

   $ 2,560  

 

As of March 31, 2024, $0.2 million of costs associated with the 2024 Ting Restructuring Plan remained unpaid and recorded as a liability, reflecting the expected future cash outflows related to employee terminations under the plan. This accrual represents the final portion of the severance benefits yet to be settled, scheduled for payment within the following quarter. The liability for the 2024 Ting Restructuring Plan was included in Accrued liabilities in the consolidated balance sheet, and the following tables summarize the related activity for the 2024 Ting Restructuring Plan for the three months ended March 31, 2024 (Dollar amounts in thousands of U.S. dollars):

Cost Description

  

As of December 31, 2023

    

Charges for the Three Months Ended March 31,2024

    

Cash payments made in the Three Months Ended March 31,2024

    

Balances as of March 31, 2024

  

One-time pay

   $ -     $ 2,089     $ (1,986 )   $ 103  

Continuation of benefits

     -       280       (280 )     -  

Outplacement costs

     -       191       (52 )     139  

Total

   $ -     $ 2,560     $ (2,318 )   $ 242